Solved

Refer to the Diagram Given Below

Question 168

Multiple Choice

Refer to the diagram given below. Refer to the diagram given below.   When the real output increases from Q<sub>1</sub> and the price level decreases from P<sub>1</sub>, there should have been a: A) shift of the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>. B) shift of the aggregate supply curve from AS<sub>1</sub> to AS<sub>3</sub>. C) movement along the aggregate demand curve from e<sub>1</sub> to e<sub>2</sub>. D) movement along the aggregate demand curve from e<sub>3</sub> to e<sub>1</sub>. When the real output increases from Q1 and the price level decreases from P1, there should have been a:


A) shift of the aggregate supply curve from AS1 to AS2.
B) shift of the aggregate supply curve from AS1 to AS3.
C) movement along the aggregate demand curve from e1 to e2.
D) movement along the aggregate demand curve from e3 to e1.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents